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Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach

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  • Guan, Zepeng
  • Hossain, Mohammad Razib
  • Sheikh, Muhammad Ramzan
  • Khan, Zeeshan
  • Gu, Xiao

Abstract

Contrary to most existing studies in the literature, we adopt the energy-related GHG emission (EGHG), an aggregate measure of environmental pollution, to present how GDP, energy efficiency, environmental technology, and globalization affect the environmental changes in the G-7 region from 1990 to 2020. We leaned on the novel Method of Moments Quantile Regression (MMQR) approach to obtain the coefficients in heterogenous quantiles. The findings show that all identified parameters, except for GDP, meaningfully reduce energy-related GHG emissions in the G-7 forum, and the findings are homogenous in all quantiles. More specifically, a surge in economic activities boosts EGHG in G-7 territories. Since energy efficiency is negatively related to EGHG, we claim that the G-7 forum has been able to curb the rebound effect in energy consumption. Furthermore, environmental innovations are a boon for reducing EGHG in the forum, indicating that these nations are on the right track to attain carbon neutrality and green growth directories as prescribed by the last climate conference (COP27). Besides, globalization reduces EGHG through the technology-driven spillover effects, indicating that the G-7 forum has successfully harnessed globalization to exchange R&D, technology, and innovation skills, which have escalated this forum's capacity to fight against climate change.

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  • Guan, Zepeng & Hossain, Mohammad Razib & Sheikh, Muhammad Ramzan & Khan, Zeeshan & Gu, Xiao, 2023. "Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach," Energy, Elsevier, vol. 281(C).
    • Handle: RePEc:eee:energy:v:281:y:2023:i:c:s0360544223016286
    DOI: 10.1016/j.energy.2023.128234
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